Tenants are paying $50 a week more on average compared to this time last year, close to $3000 more a year, according to Trade Me’s latest Rental Price Index.
Every region saw an annual rise last month while demand remains high for apartments and townhouses from New Zealanders instead of standalone houses.
Trade Me property sales director Gavin Lloyd said renters are doing it tough amid the cost-of-living crisis as median weekly rents reached a new record in June.
"Landlords are still feeling confident to put up prices, but this might be reaching a peak as the confirmed recession, cost of living and lack of disposable income hits tenants," he said.
"Despite the annual increase, rental prices do seem to be slowing in some regions. Over the coming months we expect many tenants will choose to stay where they are rather than look for a new rental, which should cause prices to drop or at least steady."
From Trade Me's data, the largest rent jumps were seen in Marlborough which rose 15% to reach a new record of $580 per week, and Auckland saw its median weekly rent jump 12% to a new high of $670.
Canterbury saw an 11% annual increase to remain steady at May’s record of $550.
Lloyd said: “If we look at the monthly trend across the motu, however, it appears rent growth in some regions is slowing.
"Wellington, Canterbury, Hawke’s Bay, Manawatū/Whanganui, and Bay of Plenty saw no change in rents when compared with May."
The property sales director said a desire for Kiwis to live in cities continued to drive demand.
"We are seeing a lot of demand in the major cities, with people choosing apartments and townhouses that are smaller, warmer and drier, but also close to the city, which may be helping people save transport and other costs," he said.
Apartments across the board were popular in June, with rents for apartments in Auckland and Christchurch reaching new record highs of $575 and $500, Trade Me said.
It added that the number of properties available for rent was down significantly in June, falling 19% on the same time last year, while demand was up at 35%.
"We expect given the high rent prices, and the winter months, people are deciding to stay put rather than face the tough market,” Lloyd said.
"Winter is often a time of year where people rug up rather than move house. When we reach spring it will be interesting to see whether interest increases, or if the high rent prices will put pressure on landlords to lower prices in order to entice potential tenants."
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